Value is in the land. Excellent potential for building new home on the site. Single Family Home currently exists on site but is in very poor condition. Property boundaries have been surveyed and the corners posted. Buyer is advised to investigate development potential with the City of Palo Alto Building and Planning Departments. Offers will be reviewed on February 1st.
4031 Amaranta flyer
There seems to always be something new in residential real estate that I have never experienced in the past 32 years I have been in real estate.
I have a client who is purchasing a home very nearby the home they own now. In order to obtain their financing for the purchase, the bank required that they put their own home on the open market for sale. Despite the fact that they didn’t need to sell their home to get their new home purchased, it was required that they actually list their current home for sale.
Since their current home isn’t nearly ready to show, it seemed illogical that an active listing would be required to get their new home loan. Nevertheless, we went ahead and put it actively on the market to satisfy the lender with the caveat that it was being prepared for the market and could not be show until further notice. Truly this is an UN-listing!
The UNreality of the real estate market in the Silicon Valley and Peninsula markets is such that this isn’t just a ‘red hot’ market, it’s a “Ghost Pepper hot” market! When you have an area that is landlocked like the San Francisco Peninsula and Silicon Valley and there isn’t any more land that is going to magically appear, and you have the hottest companies on the planet wedged into an area the size of Delaware, it creates the “perfect storm” for residential real estate.
Will Rogers said “put your money in land, because they aren’t making any more of it!” He was certainly right for the Peninsula and Silicon Valley. If you are planning to live in the Bay Area, you have to stake your claim here sometime, so find what you can and buy it. Even if this market is a “bubble”, all you need is to give it some time and in 10 years, I bet you’ll be happy you own your own piece of land here.
As we enter into the heart of the Spring market, the inventory of available homes remains very low. Even though last week the inventory practically doubled from the week before, inventory is still 1/2 of what we usually see at this time of year.
Many homes did come on last week in anticipation of the Easter weekend and spring break and there are additional homes that have come on for this Easter weekend. Yet, the demand remains very high and there are still multiple offers and sales over asking price. Now that we are 3 weeks away from Memorial Day and the UN-official start of the summer, this should be the time we would see the most number of new listings appear on the market! All bets are off though on this one.
Some off market inventory has increased, as some would like to sell without having to go through the whole preparation and marketing process which makes finding a home a bit more difficult. Real Estate agents are networking like never before with their colleagues to see what they have coming up. After 30 years in business, I have some great connections and have found a number of off-market or at least coming soon homes to show my buyer clients.
Contact me to find out what’s happening in your neighborhood!
One of the most favorable reasons for owning a home for your personal residence, is the Mortgage Interest and Property Tax deductions you can write off against your income. Although much of the country can enjoy the full benefit of this deduction, high priced real estate areas where loans exceed $1 million, are limited in the mortgage interest deduction they make take against their income. Areas such as the San Francisco Bay Area and Silicon Valley, where many mortgages are over $1 million, are limited in the amount mortgage interest they can deduct. You are allowed to only take the mortgage interest up to $1 million plus an additional $100,000 “qualified” equity 2nd. This limitation when combined with historically lower interest rates, while still an attractive reason to own a home, is reducing the effect that it has against your income. Thankfully, Property Taxes are still fully deductible and at Bay Area prices, this can make for a substantial deduction! Also, the Alternative Minimum Tax looms out there still! Check with your own tax consultant for advice as it pertain to you.
As we march into the April market, the continued drought of new listings is causing continued bidding wars. Typically, April is when we see the highest number of new listings and that would certainly be a welcome break for the buyers in the market now. I advise my clients that they need to look at homes that are priced 10% below their target price so that they have room to offer a higher price for that property. I also advise for them to remain UNemotional about the outcome of their offer, as I suggest that the right home is still out there to be UNcovered.
It certainly was an offer UN-leashed! This was the fastest closing in my 30 years of residential real estate. The home I listed in Mountain View in the Gemello Park neighborhood, came on at a price of $1,295,000 on a Friday morning. I held it open over the weekend on Saturday and Sunday with big crowds both days. We asked for all offers to be delivered by 2pm on Wednesday. There were 5 offers which were received. All of the offers were very good but the best one was an “all-cash” offer, the highest price offered at $1,465,000 and to top it off, a 2 day close of escrow!
Fortunately, I had prepared my seller that this could happen so we made sure everything the escrow/title company needed was there in place, i.e. the loan payoff, the seller’s trust information etc. Sure enough, the offer was accepted at 6:00pm on Wednesday, sign-off at escrow was at 10:00am on Thursday and by 9:00am on Friday, 39 hours later, the sale was closed. UN-believable!